Royal Bank of Scotland fined Â£5.6 mn over accounts: watchdog

24th July 2013, 0 comments

State-rescued Royal Bank of the Scotland has been fined more than £5.6 million, mainly for incorrect reporting of transactions over a six-year period, a British financial watchdog announced on Wednesday.

"The Royal Bank of Scotland has been fined £5,620,300 ($8.63 million, 6.51 million euros), the Financial Conduct Authority said.

This was for "incorrectly reporting transactions they made in wholesale markets, and in some instances, failing to report transactions at all," the FCA said in a statement.

RBS was rescued with £45.5 billion of British taxpayers cash following the 2008 global financial crisis, making it the world's biggest ever banking bailout.

RBS "failed to properly report 44.8 million transactions between November 2007 and February 2013; and failed altogether to report 804,000 transactions between November 2007 and February 2012", the FCA said.

The FCA said that many of the problems had been compounded by the bank's takeover of Dutch rival ABN Amro at the height of the market in late 2007 that preceded the global economic crash the following year.

"Effective market surveillance depends on accurate and timely reporting of transactions," said Tracey McDermott, the FCA's director of enforcement and financial crime.

"We have set out clear guidance on transaction reporting, backed up by extensive market monitoring, and we expect firms to get it right.

"As well as a financial penalty, firms can expect to incur the cost of resubmitting historically incorrect reports. We will continue to take appropriate action against any firm that fails to meet our requirements," she added in the statement.

RBS said it had cooperated full with the regulator over the issue, adding in a statement: "We regret the failings that were uncovered and have subsequently made significant investments to our systems and controls in this area."